According to the National Association Realtors, pending home sales numbers were up in February for the first time in seven months. They said that all major regions saw increases outside of the mid-west.
Calculating Pending Home Sales Numbers
The Pending Home Sales Index (PHSI) is based on contract signings. It rose 3.5 percent in February. This was the eighteenth straight month that the PHSI had increased year-over-year.
The PHSI in the Northeast declined 0.2 percent to 94.0 in February, but it’s still 12.6 percent above a year ago. In the Midwest, the index shot up 11.4 percent to 112.6 in February, and it’s now 2.5 percent above February 2015.
“After some volatility this winter, the latest data is encouraging in that a decent number of buyers signed contracts last month, lured by mortgage rates dipping to their lowest levels in nearly a year and a modest, seasonal uptick in inventory,” says Lawrence Yun, NAR chief economist.
“Looking ahead, the key for sustained momentum and more sales than last spring is a continuous stream of new listings quickly replacing what’s being scooped up by a growing pool of buyers,” Yun adds. “Without adequate supply, sales will likely plateau.”
Yun also noted that price appreciation lessened to 4.4 percent. This is still above wage growth but more favorable than the 8.1 percent annual increase in January.
“Any further moderation in prices would be a welcome development this spring, particularly in the West, where it appears a segment of would-be buyers are becoming wary of high asking prices and stiff competition,” adds Yun.
Existing home sales are forecast to hit around 5.38 million this year. This is an increase of 2.4 percent from 2015. The national median existing home price is also supposed to rise- about 4 or 5 percent.
Clearly, the real estate market is doing well. It is a healthy and strong time to join in. According to last month’s pending home sales numbers, it’s a popular time to buy, and you should join in too. You’ll be even more excited to join in after seeing RE/MAX Paradise’s amazing Miami homes.